CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil

The recommended divestment makes up an interested person purchase (IPT) following the listing rules as well as is subject to CLINT’s unitholders’ authorization at an extraordinary general conference (EGM). The EGM is targeted to be completed by February 2023.

Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is in the past known as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.

“The proposed acquisition adds a premium asset developed by the Sponsor right into the CLINT portfolio. The marquee tenant profile with greater level of tenancy will certainly include considerable level to the CLINT profile,” claims Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.

The Botany at Dairy Farm

“CLI’s suggested divestment of ITPP-H to CLINT is in line with our method to offer top quality, stable-performing possessions to assist the expansion of our sponsored trusts. Including one more top-class IT park to CLINT’s strong portfolio of eight IT parks allows CLI to participate in CLINT’s expansion in India, which is among CLI’s core markets. The proposed divestment would enhance our budget under supervision and fee-related incomes,” states Jonathan Yap, CEO, listed funds at CLI.

The Botany at Dairy Farm floor plan

The divestment to CLINT comes with a thought of about INR13.5 billion ($221.9 million). The complete revenue concern represents a premium of around 9% to CLI’s valuation of ITPP-H in December 2021.

ITPP-H is an information technology unique financial area (IT SEZ) that has an overall floor location of 2.3 million sq ft on 99-year leasehold land. The park consists of four structures and is close to 100% rented out to remarkable IT/information technology-enabled services (ITES) renters including Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd

The suggested divestment types aspect of the structured pipeline of investments being created by CLI India, CLINT’s supporter. It is even said to offer CLINT with the capability to produce better scale in its portfolio in India and also grows its existence in Pune which offers significant operational advantages to the REIT.

CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and its conjoint venture associate Maharashtra Industrial Development Corporation (MIDC) have already participated in different agreements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their own 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.

“With this transaction, CLI has announced gross divestments of $2.9 billion year-to-date, close to our annual capital reusing target of $3 billion. Nearly 90% are divestments to our listed investment and private cars, illustrating these networks as essential growth drivers for us. CLI has a pipeline of around $10 billion of high-grade properties on our balance sheet, that we can potentially provide to our several charges income-generating listed funds and special cars,” he adds.

The properties in the park have recently acquired Leadership in Energy also Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum license for Green Campus.

After the divestment, CLI will remain to offer residential property and lease management services for ITPP-H to CLINT.

Shares in CLI shut flat at $3.67 whilst units in CLINT finalized flat at $1.13 on Dec 28.

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